One of the unique challenges of any manufacturing enterprise is pricing of its end products. Traditionally, these prices are computed on the basis of a cost-plus measure and some measure of the ability of the customer to pay.
In recent years, computer-implemented enterprise management tools have been developed to assist in management decisions. These tools often include pricing tools, intended to assist in the pricing process.
Although product pricing methods have been developed for airlines, such tools are not necessarily suitable for manufacturers. For example, many manufacturers (referred to as “material intensive manufacturers) have limited materials (components) rather than capacity. Demand is probabilistic and is not in a particular order for different prices, as is the case with airline travel.